Fractional Ownership News
Fractional Finance Solutions
At a time when traditional sources of financing have become difficult to come by even for individuals with excellent credit, two innovative companies are giving borrowers the opportunity to finance fractional ownership purchases with competitively priced consumer loans.
FirstAgain, an online consumer lender focusing exclusively on borrowers with excellent credit, offers an unsecured loan product called the AnythingLoan. The AnythingLoan is a completely paperless loan that allows individuals with excellent credit to borrow between $10,000 and $100,000 for literally any purchase, including fractional ownerships. Fixed-interest rates start as low as 7.49 percent*. Borrowers can use the AnythingLoan to finance fractional ownership of vacation properties, private jets, boats, yachts, RVs and more.
“We believe that borrowers with excellent credit should be treated to low-interest loan products and great customer experiences regardless of market conditions,” said Gary Miller, co-founder and CEO of FirstAgain.
With FirstAgain’s entirely online loan, credit applications are completed, submitted and reviewed online and applicants are emailed a decision within minutes. Customers can even sign their loan documents with their computer mouse. Approved applicants can set up their loan for funding immediately and funds can be transferred into the applicant’s bank account of choice as soon as the same day. There are no fees, down payment requirements or prepayment penalties, and because FirstAgain’s loan are unsecured, no collateral requirements.
For borrowers looking to finance larger purchases in the high-end vacation property market, NextStar Funding provides a variety of traditional secured mortgage products that can be used for fractional financing. NextStar offers five adjustable-rate mortgage options with introductory fixed-rate periods ranging from one to 10 years combined with a 30-year amortization and no prepayment penalties. Interest rates range from 6.375 percent to 7.75 percent** and loans are available for as much as $1 million to finance up to 75-80 percent of fractional real estate purchases.
“It’s important to understand that for well-qualified buyers, there are pretty attractive fractional financing options given the unique nature of the property and today’s challenging credit markets,” said Dustin Carfield, co-founder of NextStar Funding. “A lot of our customers could have paid cash, but they believe in leveraging some portion of their purchases, especially with real estate and particularly when they have the opportunity to achieve higher returns from their investment portfolios.”
Borrowers hoping to finance 90 to 100 percent of their fractional real estate purchase can potentially combine product offerings from NextStar and FirstAgain to achieve this goal, according to Carfield.
FirstAgain and NextStar are available to borrowers at a time when even the most well off are faced with limited access to home equity loans, for years a primary source of fractional interest financing. The amount of home equity loans accessed by homeowners dropped by more than 17 percent from 2006 to 2007 according to Integrated Mortgage Finance, a leading provider of residential mortgage statistics. The trend can be expected to continue in 2008 and beyond as more and more lenders are both cutting back the availability of new home equity lines of credit and freezing existing ones.
For more information about fractional financing opportunities from FirstAgain and NextStar Funding, visit www.firstAgain.com/fractionals or www.nextstarfunding.com.
*Rates vary by loan purpose, term and amount are subject to change without notice. Visit www.firstagain.com to see current rates.
**Rates subject to change with market conditions and without notice.
